United States: House prices moderate further in July
September 27, 2016
The S&P/Case-Shiller 20-city home composite index rose 0.6% in July over the previous month. The result, which was in line with market expectations, came in below the 0.8% increase recorded in June and marked a third month of moderation. When adjusted for seasonal factors, home prices were flat over the previous month (June: -0.1% month-on-month).
In annual terms, home prices rose 5.0% in July, which edged down from the 5.1% increase recorded in June. In a statement, S&P said that Denver, Portland and Seattle continue to be the cities with the greatest increases.
According to S&P, “the statement issued […] by the Fed after its policy meeting [on 21-22 September] confirms the central bank’s view that the economy will see further gains. Most analysts now expect the Fed to raise interest rates in December. After such Fed action, mortgage rates would still be at historically low levels and would not be a major negative for house prices.”
Author: Ricardo Aceves, Senior Economist